Dominion Requests Rate Increase to Cover Higher Costs

Dominion Energy (NYSE: D  ) announced today that it is applying for a fuel rate increase as a result of higher costs and increasing demand.

The first such request in two years, the regulatory request works out to $2.36 extra on top of an average customer's $108.39 monthly bill.

Fuel rates account for around 25% of total customer costs and, unlike an overall rate request, doesn't reflect any additional profit on Dominion's part. Instead, this fuel rate request is meant to offset increased expenses resulting from higher fuel prices, a return to normal electricity demand, and above-average nuclear refueling outages for 2013.

The move comes a week after the utility reported earnings, hitting sales predictions, but failing to match earnings expectations.

According to Dominion, the proposed rate increase would keep its Virginia customers' rates below national and regional averages. If approved, rates would rise in July.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2407976, ~/Articles/ArticleHandler.aspx, 12/21/2014 12:43:56 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement